JPMorgan’s Piepszak exits race to replace CEO Dimon

Bengaluru/New York — One of the leading contenders to become CEO of JPMorgan Chase, Jennifer Piepszak, on Tuesday took herself out of the running for now, throwing confusion over succession plans that have long been the subject of speculation on Wall Street.

Investors have been focused on CEO succession at JPMorgan for years. Tuesday’s announcement cast more uncertainty over who will eventually replace Jamie Dimon, who in 2024 announced he could step down in as soon as two-and-a-half years, analysts and sources said.

Piepszak will succeed Daniel Pinto, a top lieutenant of Dimon and a four-decade veteran at the investment bank. He will relinquish his role as president and COO on June 30 and retire at the end of 2026.

The bank has rotated executives across divisions in recent years to give them more experience.

“Piepszak has made clear her preference for a senior operating role, working closely with Jamie and in support of the top leadership and she doesn‘t want to be considered for the CEO position at this time,” a bank spokesperson said.

The executive has held major roles in her three decades at JPMorgan, currently serving as co-CEO of its commercial and investment bank. She was its finance chief from 2019 to 2021.

The contenders for CEO now include Marianne Lake, CEO of consumer and community banking, and Troy Rohrbaugh, head of the commercial and investment bank (CIB). Doug Petno, the current co-head of global banking, is another CEO contender who will now join Rohrbaugh as co-head of the CIB.

“This makes the succession at JPM murkier for longer,” said Mike Mayo, banking analyst at Wells Fargo, adding he thought Piepszak was still a contender. “It is a race between Lake and Piepszak and seems like the latter got a leg up but this is not over yet.”

Dimon’s next steps have long been the subject of speculation.

“Jamie Dimon is a tough act to follow, even though he’s done a great job shuffling top executives around to gain more experience,” said David Wagner, portfolio manager at Aptus Capital Advisors.

Pinto was previously cited by the board as the executive who could step in for the CEO in the near term, like he did in 2020 when Dimon had an emergency heart surgery.

In a statement Dimon said Pinto had done a “truly exceptional job” in every role he played at the firm. “When a CEO is at the helm for so long, many of his proteges get older and would prefer to ride off into the sunset than take on a position that they’re likely expected to be there for a decade,” Wagner added.

Reuters